Funding a trust in California involves legally changing ownership of assets from an individual to the trust. This process, frequently used in estate planning, can encompass various property types, including real estate, bank accounts, vehicles, and investments. For example, a grantor might deed their home to their living trust, effectively making the trust the legal owner of the property.
This strategic placement of assets provides several advantages. It can avoid probate, a often lengthy and costly court process for distributing assets after death. Furthermore, it can offer greater privacy regarding asset distribution compared to wills, which become public record during probate. Historically, trusts have been valuable tools for managing wealth and ensuring its smooth transfer across generations, adapting to evolving legal and financial landscapes.
